Eurofresh Agrees To Pay Back Pay And Interest

By Tammy Gray-Searles
   Eurofresh Farms, which is headquartered in Willcox but operates a growing facility in Snowflake, has agreed to pay nearly $1 million in back pay to 587 workers as part of a settlement with the U.S. Department of Labor.
   According to an announcement made by the Department of Labor on Dec. 2, Eurofresh will pay a total of $937,460 in back wages and interest. The company has already paid $550,000. The Department of Labor notes, however, that a total of $4,909,644 was due in back wages, but the amount was reduced in the settlement and is similar to agreements made to pay back other unsecured debt in the company's bankruptcy case.
   In the back wage case, the Department of Labor says that Eurofresh “violated several provisions of the Immigration Reform and Control Act designed to protect the jobs of corresponding U.S. workers when the company hired foreign agricultural workers under the H-2A temporary worker program.” It also noted that one of the violations was “illegally terminating 527 U.S. workers.”
   The Department of Labor will be responsible for making payments to the workers who are owed back pay.
   “The back wage payments for these workers are the result of significant effort to ensure all workers are treated properly when employers participate in this temporary worker program,” said Secretary of Labor Hilda L. Solis. “Employers who participate in the H-2A program should make certain that their workers are treated fairly. It’s not only the right thing to do, it’s the law.”
   Eurofresh is required to make payments on the remainder of the back wages in September 2010 and September 2011.
   The company announced Nov. 18 that it had successfully emerged from bankruptcy. In the announcement Eurofresh noted, “Eurofresh ...emerged from bankruptcy less than seven months after they originally reached a recapitalization agreement with their investors, including Eurofresh founder and current chairman, Johan van den Berg. The company originally announced their financial reorganization on April 21, 2009. Dwight Ferguson, chief executive officer of Eurofresh, said the company is emerging from bankruptcy stronger than ever, and will continue searching for future growth opportunities. ‘The future for Eurofresh has never been brighter,’ he said. ‘We look forward to providing the highest quality produce and services available to our customers for many years to come.’”